Login ID:
Password:
Partner Login
Contact Us : 7066511911

Crude Oil Struggles to hold 5– Months High amid Pandemic Worries

6 Aug 2020 8:24 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai (Commodities Control) – Oil prices were unchanged on Thursday, struggling to hold onto five-month highs reached in the previous session, as fuel demand worries caused by a second wave of coronavirus infections outweighed declines in the U.S. dollar.

U.S. West Texas Intermediate (WTI) crude futures were down 3 cents, or 0.1%, at $42.16 a barrel at 0148 GMT, while Brent crude futures rose 6 cents to $45.23.

The two benchmark contracts rose more than 1% on Wednesday to their highest since March 6, completing a four-day rally, after the Energy Information Administration reported a much bigger than expected drop in U.S. crude stockpiles. However, investors remained wary of rising U.S. refined product inventories at a time when U.S. central bankers said the resurgence in cases was slowing the economic recovery in the world's biggest oil consumer.

EIA data showed distillate stockpiles, which include diesel and heating oil, climbed to a 38-year-high, and gasoline inventories unexpectedly rose for a second week in a row.

"It is difficult to get overly constructive towards the oil market with demand having stalled and this product overhang," ING Economics said in a note on Thursday.

The U.S. EIA calculated gasoline demand remains around 8.6 million barrels per day, around 10% lower than a year earlier, just as the U.S. driving season, which ANZ Research called the "world's biggest seasonal demand period", was winding down.

Still, recent declines in the U.S. dollar have supported higher oil prices. Since oil futures are priced in dollars, crude prices tend to rise to offset the weaker currency.

"Since oil is priced in dollars, that is good for oil," AxiCorp market strategist Stephen Innes said in a note.

The dollar logged its biggest monthly percentage fall in a decade against a basket of six currencies in July and a poll found analysts expect it to continue falling into next year.

(Commodities Control Bureau)




       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Market Commentary
Energy – Crude Oil (Oct ‘20) – Consolidating Near A Res...
Energy – Natural Gas (NYMEX) – Requires A Breakout Abov...
Low Diesel Demand hits BPCL’s Crude Runs, Ups Petrol Im...
Crude Oil Up 1% on Economic Hope; Virus Fears Check Pri...
Energy – Crude Oil (Oct ‘20) – Consolidating Near A Res...
more
Top 5 News
Sugar (LIFFE) – Testing a Potential Resistance Zone ($3...
Sugar (ICE) – Consolidating Near Support ($13.10)
Soy Complex – Soybeans (CBT) – Counter-trend Decline / ...
Soy Complex – Soybean Oil (CBT) – Pullback Underway / T...
Soy Meal (CBT) – Emerging Signs of a Pullback / Next Su...
Top 5 Special Reports
USD/INR (Oct ‘20) – Consolidating in a Downtrend / More...
CCI Gears Up For Export First Time thru Government Chan...
Weekly: Pulses Rise on Crop Damage Report, Hike In MSP
USD/INR (Oct ‘20) – Needs a Breakout Above Resistance a...
Weekly: ICE Cotton Manages to End Positive on Technica...
Copyright © CC Commodity Info Services LLP. All rights reserved.